What was once the source of rowdy nightlife is poised to become Boston’s next boutique hotel.

The Boston Planning & Development Agency on Thursday approved the Hudson Group’s proposal to put a 21-story boutique hotel at 150 Kneeland St. The property was once home to Splash Ultra Lounge, a nightclub that closed in 2012 after complaints of overcrowding and serving alcohol to minors. Hudson’s vision for the hotel is decidedly less raucous.

“We have been dedicated to the neighborhood for close to 25 years,” Hudson Group partner and Leather District resident Noam Ron said in a prepared statement. “It’s an ideal location for a boutique hotel that will provide much needed guest rooms near South Station, add permanent and temporary jobs and enliven an underutilized corner.”

The 230-room hotel is being designed by RODE Architects and will include a café and lounge open to the public. The developer will also make infrastructure improvements as well as add features to improve pedestrian safety and security near the hotel.

Hudson, which also developed the Radian Boston apartment tower nearby, has made a 10-year commitment to provide 300 free hotel nights each year to people in need of a place to stay. The rooms will be available to those experiencing short-term housing emergencies stemming from loss of property, medical issues or immigration displacement.